Qantas Super has entered into an agreement to merge with Australian Retirement Trust (ART).
When completed, the merger will see over 26,000 Qantas Super members join the almost $300 billion fund.
The agreement confirms both parties’ commitment to merge and sets out the framework that will be used by each trustee to prepare for the merger.
The merger will be subject to both Qantas Super and ART completing the final assessments of their respective members’ best financial interests and equivalency of rights in relation to benefits, as well as signing a Successor Fund Transfer Deed.
According to Qantas Super chair John Atkin, ART has “demonstrated its strong commitment to taking care of our members and their best financial interests” through the process of exploring merger options.
“We believe that ART will be the right partner to help our members feel confident in their financial future so they can look forward to retirement,” he said.
Qantas Super announced it was seeking a merger partner in September 2023, prompted by a review of its scale and future prospects.
It went on to undertake a “comprehensive assessment of options available”, which included remaining an independent corporate super fund.
Commenting on the merger, ART chair Andrew Fraser said the fund is honoured to be selected as Qantas Super’s merger partner, adding it remains committed to its 2.3 million existing members.
“With both ART and Qantas Super deeply committed to doing the right thing by our members, we will work towards a merger together. The merger will proceed if we believe it is in the best financial interests of members,” he said.
The last financial year has been “the biggest year of transitions” for ART, he observed.
The mega fund has undertaken four successor fund transfers and corporate transitions totalling some $19 billion, including AvSuper, Woolworths, Commonwealth Bank, and Alcoa.
“Not only does this cement our position as an industry leader in the merger and transition space, but it is evidence that trustees and corporate Australia are choosing us, and we are incredibly proud of this,” Fraser said.
Qantas Super’s Atkin added: “Qantas Super has had the privilege and responsibility of managing the superannuation and retirement savings of Qantas Super’s members for 85 years, and selecting the right partner to carry on this work is a responsibility the trustee board has taken extremely seriously.”
